REDEVELOPMENT COMMISSION MEETING

June 28, 2010

 

The regular meeting of the City of Mishawaka Redevelopment Commission was called to order at 6:30 p.m., Monday, June 28, 2010, in Room 205, City Hall, 600 East Third Street, Mishawaka, Indiana.  Commissioners, Eberhart, O’Dell, Troiola, Mammolenti, and Gebo were present.  Commissioner Stillson was absent.  Also in attendance:  Jeff Rea, Mayor; Lory Timmer, Community Development Director; Ken Prince, City Planner, Kari Myers, Administrative Planner, John Gourley, Legal Counsel; and Dennis Murphy and Bob Stephens from IronWorks, and Sue Lowe of the South Bend Tribune.

 

Commissioner Mammolenti moved to approve the minutes of the May 24, 2010 meeting.  Commissioner Gebo seconded; motion carried.

 

RIVER CENTER UPDATE

Dennis Murphy, IronWorks of Mishawaka, said the commercial / restaurant building was listed for sale on June 1st.  He said that has generated more calls with people looking for restaurant space.  He said people are looking at other buildings and want to pre-lease.

 

Commissioner Mammolenti asked if the calls were for leasing or buying the building.  Mr. Murphy said the majority of calls were for leasing.

 

Commissioner Troiola asked if someone wanted to build to suit, would they consider that.  Mr. Murphy said yes, if it conformed to the design guidelines and master plan.

 

Commissioner O’Dell asked if they had a preference who went in the building.  Mr. Murphy said interest has come mainly from mom and pop establishments.

 

Bob Stephens said often when people look at our area, they look primarily at Granger and Grape Road.  He said the restaurant is extremely important for traffic and it’s very difficult for restaurants to get financing.  He also said he hopes to have a good announcement in the future and they may start a fourth building later this year.

Commissioner Troiola asked if it needed to be pre-leased.  Mr. Stephens said no.

 

Mayor Jeff Rea asked Mr. Stephens for clarification.  He said commercial will not hold up residential.  They would want the majority of a new commercial building leased before building.

 

Mr. Murphy said there is plenty of office space available in the market and are practically giving it away.  Their space is a different price point and the building is new.

 

Commissioner Mammolenti asked if it was worth getting a small tenant to generate some income and create a snowball effect.  Mr. Stephens said they’ve entertained that idea.  He said it’s the softest market he has seen in his lifetime.  He built the building to last 75 years and he’s confident he’ll get the space leased. 

 

Commissioner O’Dell told Mr. Stephens he was doing the right thing by holding their ground.  The people who’ll meet your price point will stay.

 

Mr. Stephens said they have something unique.  No city the size of Mishawaka is doing what we’re doing.  Mayor Rea said he can attest to the activity on the Riverwalk and is excited about the energy and remains hopeful.

 

Mrs. Timmer presented the following Resolutions for consideration:

RESOLUTION 2010-13:  DETERMINING THE NEED FOR TAX INCREMENT REVENUE AND AUTHORIZING NOTICCE TO BE PROVIDED TO THE ST. JOSEPH COUNTY AUDITOR

This resolution states that all funds to be derived from the City of Mishawaka’s Northwest Area Improvement Project in 2010 will be required for debt service and other expenses incurred for public improvements in the area.  The resolution also authorizes notice to be provided to the St. Joseph County Auditor, as well as the affected taxing units.  This resolution is considered by the Commission each year.  Commissioner Gebo moved to approve Resolution 2010-13.  Commissioner Mammolenti seconded; motion carried.

 

RESOLUTION 2010-14:  DETERMINING THE NEED FOR TAX INCREMENT REVENUE AND AUTHORIZING NOTICE TO BE PROVIDED TO THE ST. JOSEPH COUNTY AUDITOR

This resolution states that all funds to be derived from the City of Mishawaka’s Southside Economic Development Area in 2010 will be required for debt service and other expenses incurred for public improvements in the area.  The resolution also authorizes notice to be provided to the St. Joseph County Auditor, as well as the affected taxing units.  This resolution is considered by the Commission each year.  Commissioner O’Dell moved to approve Resolution 2010-14.  Commissioner Gebo seconded; motion carried.

 

RESOLUTION 2010-15:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 646 - 646 ½ LINCOLNWAY EAST

This property was discussed at the May 2010 meeting of the Redevelopment Commission.  It is a vacant, foreclosed-upon seven-unit apartment building.  The property is being acquired from TCU for $50,000.  The Buy-Sell agreement has already been executed by the Commission and the seller.  Closing is scheduled for June 29th, and demolition is expected to take place in September 2010.  Commissioner Troiola moved to approve Resolution 2010-15.  Commissioner Gebo seconded; motion carried.

 

RESOLUTION 2010-16:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 311 CLEVELAND STREET

This property is part of our NSP strategy area.  It is a foreclosure, and the average of two appraisals, less 1% as required by NSP guidelines, is $26,482.50.  The Department will close on the property the week of July 5th.  Demolition is expected to take place in September 2010.  The lot will be used for the City’s 2011 First Time Homebuyer Program.  Commissioner Mammolenti moved to approve Resolution 2010-16.  Commissioner O’Dell seconded; motion carried.

 

RESOLUTION 2010-17:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 311 SOUTH LAUREL STREET

This property is part of our NSP strategy area.  It is a foreclosure, and the average of two appraisals, less 1% as required by NSP guidelines, is $22,275.  The Department will close on the property the week of July 5th.  Demolition is expected to take place in September 2010.  The lot will be donated to Habitat for Humanity of St. Joseph County.  Commissioner O’Dell moved to approve Resolution 2010-17.  Commissioner Gebo seconded; motion carried.

 

RESOLUTION 2010-18:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 510 WEST TENTH STREET

This property is part of our NSP strategy area.  It is a foreclosure, and the average of two appraisals, less 1% as required by NSP guidelines, is $25,245.  The Department will close on the property the week of July 5th.  Demolition is expected to take place in September 2010.  The lot will be used for the City’s 2011 First Time Homebuyer Program.  Commissioner Mammolenti moved to approve Resolution 2010-18.  Commissioner Troiola seconded; motion carried.

 

RESOLUTION 2010-19:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 717 WEST SEVENTH STREET

This property is part of our NSP strategy area.  It is a foreclosure, and the average of two appraisals, less 1% as required by NSP guidelines, is $41,085.  The Department will close on the property the week of July 5th.  The house will be rehabilitated and used for the City’s 2011 Lease-to-Own Self-Sufficiency Program.  Commissioner O’Dell moved to approve Resolution 2010-19.  Commissioner Gebo seconded; motion carried.

 

RESOLUTION 2010-20:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 313 WEST EIGHTH STREET

This property is part of our NSP strategy area.  It is a foreclosure, and the average of two appraisals, less 1% as required by NSP guidelines, is $38,075. The Buy-Sell agreement has already been executed by the Commission and the seller.  The house will be rehabilitated and used for the City’s 2011 Lease-to-Own Self-Sufficiency Program.  Commissioner Gebo moved to approve Resolution 2010-20.  Commissioner O’Dell seconded; motion carried.

 

RESOLUTION 2010-21:  APPROVING AN ENVIRONMENTAL RESTRICTIVE COVENANT AGREEMENT

The City acquired the former service station at 1126 S. Union Street in 2007.  Since that time, we have paid approximately $55,000 to have the site tested, monitored and treated for release of petroleum and other regulated substances.  To obtain clearance from the Indiana Department of Environmental Management, our consultant, QEPI, has recommended that we attach an Environmental Restrictive Covenant to the deed to ensure the protection of the environment and the safety of the public.  The covenant restricts the City or any future owner of the property from using the site for residential or agricultural purposes and from installing drinking water wells.  We are seeking your approval for this resolution so that an affidavit and covenant can be recorded with the deed to this property.  Commissioner O’Dell moved to approve Resolution 2010-21.  Commissioner Mammolenti seconded; motion carried.

 

Mrs. Timmer updated the Commissioners on the projects listed below:

TIF PROJECTS UPDATE

Main Street - Mishawaka Avenue to Battell Street

Bids for the Main Street Improvements, Phase III, were opened on June 8, 2010.

 

Main Street Demolition: 101 E. McKinley (Midas bldg)

The demolition contract was awarded to C&E Excavating.  Demolition began May 27 and is complete.

 

Main Street Demolition: 108 W. McKinley (Main Muffler)

The demolition contract was awarded to John Boettcher Sewer and Excavating.

 

Douglas Road Medical Park Road Phase I 

Sanitary Sewer and water main installations are complete.  Current work in progress consists of storm sewer and conduit installation with concrete pavement and curb to follow.  Substantial project completion is scheduled for end of July.

 

 

River Crossing 2

Carson & Roberts has begun construction. They have installed the gravity sewer pipe and begun on the Central Park improvements. Work in the park is complete and the remainder of the project is anticipated to be finished by the end of August.

 

NON-TIF PROJECT OF INTEREST

Milburn Boulevard Improvements

The Water Department changed out all the water service, and that altered the schedule.  However, project completion is still anticipated for August 15.  Curb installation will begin next week on four blocks of the project.  Work on Delaware Street is complete, and is now open all the way through.

 

NEIGHBORHOOD PROGRAMS

Neighborhood Stabilization Program (NSP) Grant

River Center Apartments:  An article about window restoration vs. window replacement at the future apartments appeared in a June edition of the South Bend Tribune.  Christman Custom Painting of Mishawaka is currently preparing the frames for installation of the one replacement and two rehabbed windows.  As soon as the windows are in place, an informational meeting will be held on site to help the Commissioners make a decision regarding the type of window to use in the project. 

 

Mrs. Timmer said in May she submitted a project modification proposal to the Indiana Housing and Community Development Authority (IHCDA) requesting that our target area be expanded, and that we be allowed to decrease the number of proposed rehabs and increase the number of proposed demolitions.  She received approval last week for the modification. 

 

The new boundaries of our target area are:  Marion Street to the north; Tenth Street to the south; Merrifield Avenue to the east; and, Harrison Street to the west.  The change was requested because of the difficulty we’ve run into in attempting to acquire properties in foreclosure.  Many properties are in ‘mortgage limbo’; foreclosure hasn’t been completed, yet the owners, when they can even be located, don’t always believe they own the property.  Also, in the cases where banks have completed foreclosure, they aren’t willing to sell the properties for the appraised values.

 

With our acquisition consultant, we have investigated almost 90 properties.  To date, we have acquired nine properties and have signed purchase agreements for an additional four sites.  The properties acquired are:

·       530 W. Sixth Street / 531 W. Fifth Street (future Habitat site)

·       548 W. Sixth Street (future Habitat site)

·       550-552 W. Sixth Street (future Habitat site)

·       407 W. Sixth Street (future First Time Homebuyer site)

·       501 W. Sixth Street (future First Time Homebuyer site)

·       519 W. Sixth Street (future First Time Homebuyer site)

·       513 S. Taylor Street (future Habitat site)

·       327 Milburn Court (future Habitat site)

·       313 W. Eighth Street (rehab - future Self-Sufficiency house)

 

Closings are expected to take place the week of July 5th on the following:

·       311 Cleveland Street (future First Time Homebuyer site)

·       311 S. Laurel Street  (future Habitat site)

·       510 S. Tenth Street (future First Time Homebuyer site)

·       717 W. Seventh Street (rehab - future Self-Sufficiency house)

 

Mrs. Timmer indicated she bid $38,000 on a foreclosed house owned by HUD, and the bid was accepted.  The house is located at 718 W. Seventh Street.  It is a brick four-square in very good condition, and will be rehabilitated for use in our Lease-to-Own Self-Sufficiency Program.  Offers have also been submitted on two additional foreclosed properties: 614-618 East Battell and 529 East Fourth Street.  Both properties are short sales, so acceptance of our offers is subject to how much of a loss the lenders are willing to absorb.

 

The four structures at 530 W. Sixth Street were demolished the week of June 14.  Habitat will begin its build on that site in July 2010.  The demolition of 548-550-552 W. Sixth Street was awarded to Indiana Earth, Inc. of Osceola, for a total contract amount of $22,430.  Demolition will begin the week of July 5th.

 

As a requirement of the NSP program, Requests for Qualifications for Builders were published; one request for low-income housing builders, and second for First Time Homebuyer Program builders.  Habitat for Humanity of St. Joseph County and All-American Group in Elkhart both submitted qualifications to be the City’s low-income housing builder.  Based on a review of both organizations’ submittals, Mrs. Timmer recommended that we accept Habitat for Humanity of St. Joseph County as a low-income housing building partner.   Commissioner Gebo moved to accept Habitat for Humanity of St. Joseph County as low-income housing building partner.  Commissioner Mammolenti seconded; motion carried.

 

Qualifications were received from Place Builders, Jeff Moser Homes, the McCollester Group and All-American Group for First Time Homebuyer Program builders.  After reviewing all submissions, Mrs. Timmer requested the acceptance of Place Builders, Jeff Moser Homes and the McCollester Group as building partners for the First Time Homebuyer Program.  Commissioner O’Dell moved to accept Place Builders, Jeff Moser Homes, and the McCollester Group as building partners for the First Time Homebuyer Program.  Commissioner Troiola seconded; motion carried.

 

FIRST TIME HOMEBUYER PROGRAM

Several families have removed themselves from the program waiting list, but we still have enough interested participants for the three homes we will build this year.  In the next few months we plan to place an article in the Communicator to attract more applicants.  As mentioned at the May Commission meeting, for the 2010 program year we will be building at 501 West Sixth Street, 407 West Sixth Street, and 519 West Sixth Street.

 

RELEASE OF MORTGAGE

In June 2000, a 10-year Forgiven Payment Loan was extended to the owners of 125 N. Elder Street.  Since all terms and conditions of the loan have been met, we are releasing the mortgage on the property.

NEXT MEETING

The next regular meeting of the Redevelopment Commission will be July 26, 2010 at 6:30 p.m. in room 205.

 

The meeting was adjourned at 8:15 p.m.

 

Respectfully submitted:                                              Approved:

 

(Signature on file)                                                        (Signature on file)                               

Kari Myers, Administrative Planner                           M. Gilbert Eberhart, President

 

(Signature on file)       

Lory L. Timmer, Community Development Director

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